Discount Delver: the 10 cheapest trusts on 16 August 2024
We reveal the biggest investment trust discount changes over the past week.
16th August 2024 13:12
by Kyle Caldwell from interactive investor
Investment trusts, due to their closed-ended structure, offer investors the chance of picking up a potential bargain. Such an opportunity arises when a trust’s share price is lower than the underlying investments held by the trust (the net asset value, or NAV).  Â
However, a trust trading on a discount to NAV is not necessarily a buying opportunity. There’s likely a good reason why the trust is cheap, such as subdued short- or long-term performance, or poor investor sentiment towards how it invests.  Â
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In our weekly series, interactive investor highlights the 10 biggest investment trust discount moves over the past week. We publish this article every Friday, using data up to the close of trading the previous day.  Â
In total, nearly 400 investment trusts have been screened, with the data sourced from Morningstar. Venture Capital Trusts (VCTs) have been excluded. We also strip out trusts with less than £20 million in assets and those that are not available on the interactive investor platform.Â
For the first time in over four years, interest rates are falling, which in theory is good news for the types of investment trusts that have been hurt by rising interest rates. One sector that has been under the cosh is renewable energy infrastructure, with investors instead turning to the bond market, which is lower risk and where yields have increased in response to rate rises.Â
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Most investment trusts in this week’s table are specialist strategies that would either potentially add spice or defensive ballast to portfolios.
Topping the table is Symphony International (LSE:SIHL), which sits in the private equity sector. Over the past week its discount has widened by nine percentage points to reach -63.2%.
In second and third place respectively are two commodity specialists: Golden Prospect Precious Metal (LSE:GPM) and Geiger Counter (LSE:GCL). The duo are now trading on discounts above -20%.
Other specialist strategies in the table are Schiehallion Fund (LSE:MNTN), DP Aircraft I (LSE:DPA), Gulf Investment Fund (LSE:GIF), and Schroder British Opportunities (LSE:SBO).
It is interesting to see two UK equity trusts in this week’s table: CT UK High Income (LSE:CHI) and Shires Income (LSE:SHRS). The UK market has been on a good run of form since the end of last October, but investor sentiment remains weak.
| Investment trust | Sector | Current discount (%) | Discount/premium change over past week* (%) |
| Symphony International Holding (LSE:SIHL) | Private Equity | -63.2 | -9.0 |
| Golden Prospect Precious Metal (LSE:GPM) | Commodities & Natural Resources | -23.2 | -5.0 |
| Geiger Counter (LSE:GCL) | Commodities & Natural Resources | -20.1 | -4.8 |
| Schiehallion Fund (LSE:MNTN) | Growth Capital | -15.9 | -4.4 |
| DP Aircraft I (LSE:DPA) | Leasing | -67.3 | -4.1 |
| CT Global Managed Portfolio Growth (LSE:CMPG) | Flexible Investment | -4.3 | -3.9 |
| Gulf Investment Fund (LSE:GIF) | Global Emerging Markets | -10.0 | -3.8 |
| CT UK High Income (LSE:CHI) | UK Equity Income | -6.9 | -3.1 |
| Schroder British Opportunities (LSE:SBO) | Growth Capital | -29.9 | -2.9 |
| Shires Income (LSE:SHRS) | UK Equity Income | -11.4 | -2.7 |
Source: Morningstar. *Data from close of trading 8 August 2024 to close of trading 15 August 2024.
These articles are provided for information purposes only. Â Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. Â The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.